LONDON--(BUSINESS WIRE)--According to the latest market study released by Technavio, the global smart card IC market is expected to grow at a CAGR of more than 8% during the forecast period.
This research report titled ‘Global Smart Card IC Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.
| The growth of m-commerce and e-commerce have accelerated the demand for secure payment options and improved the demand for smart cards. Loyalty cards offered by retail stores contain the information of customers and points earned by them through purchases. All such factors are expected to drive the market during the forecast period. |
Sunil Kumar Singh, a lead analyst at Technavio for research on embedded systems, says, “Many of the American users are shifting from magnetic stripe cards to EMV chip-enabled cards because of growth of the m-commerce industry. To remain competitive, vendors need to penetrate unfamiliar markets, meet changing customer needs, and respond to changing market scenarios. These factors are responsible for the rise in e-commerce websites.”
Request a sample report: http://www.technavio.com/request-a-sample?report=53293
Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.
Based on application, the report categorizes the global smart card IC market into the following segments:
- Telecom
- Payment card manufacturers
- Government
- Transportation
- Device manufacturers
- Others
Global smart card IC market by application 2015 (%)
| Telecom | 61.06% | ||
| Payment card manufacturers | 20.25% | ||
| Government | 4.43% | ||
| Transportation | 2.26% | ||
| Device manufacturers | 3.83% | ||
|
Source: Technavio |
|||
The top three revenue generating application segments are discussed below:
Telecom
The mobile device market is significantly driving the growth of the telecom sector due to the increasing number of SIM subscriptions. In 2014, the global SIM card subscriptions reached 7.1 billion. This increasing number of SIM card subscriptions is a result of increased smartphone shipments across the globe.
The smartphone user segment is expected to grow at a CAGR of 10.4% during the forecast period. In 2015, a total of 1.4 billion smartphones were shipped globally, against a total of almost 1.3 billion smartphones in 2014. In 2011, only 490 million smartphones were shipped globally.
Sunil says, “Countries such as China and India are expected to drive the market in APAC, which will be followed by the US. However, high penetration of 4G network and the emergence of 5G network are expected to increase SIM subscriptions in the US during the forecast period.”
Payment card manufacturers
The payment card manufacturers segment is expected to grow at a CAGR of 8.87% during the forecast period due to the migration of the end-users from magnetic stripe cards to chip-enabled EMV cards. This trend has been greatly observed in China and the US. The adoption of EMV cards has increased because of the following reasons:
- They are more durable than magnetic stripe cards as they are less prone to any damage.
- They are secure compared with magnetic stripe cards that can be hacked remotely.
Chip-enabled EMV cards constitute a major portion of smart card global shipments.
Government
The government segment was valued at USD 0.14 billion in 2015 and is expected to reach USD 0.22 billion by 2020.
The segment is likely to grow at a CAGR of 9.73% during the forecast period due to initiatives taken by governments of different countries, such as China's national ID project for the adoption of smart card technology in applications such as e-passports, voter IDs, and driving licenses. The market is expected to grow gradually during the forecast period due to the implementation of this technology by an increasing number of developing countries.
The top vendors highlighted by Technavio’s research analysts in this report are:
- Infineon Technologies
- NXP Semiconductors
- Samsung Semiconductor
- STMicroelectronics
Browse Related Reports:
- Global EMV Cards Market 2016-2020
- Global Contactless Smart Cards Market 2016-2020
- Global Banking and Payment Smart Cards Market 2015-2019
Do you need a report on a market in a specific geographical cluster or country but can’t find what you’re looking for? Don’t worry, Technavio also takes client requests. Please contact enquiry@technavio.com with your requirements and our analysts will be happy to create a customized report just for you.
About Technavio
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
If you are interested in more information, please contact our media team at media@technavio.com.
